Joined the holders in CBF this morning. Looks like a recovery going on here and I here whispers well speculation of new contract wins. The company seems to be moving away from DNA and focusing on protein and virus production and they seem to be far more focussed.

The company have restructured their sales and marketing team and appear to be more aggresive in their actions.

Fixed and variable costs have also been attacked and the company is working from a lower cost base. The companys order book is higher than it as been for a while and I beleive quarterly profit will be achieved.

Chart also looks strong and shows a break up.

Pointers To Recovery.

From last results 11th Jan.

Sales improvement in the second half of the financial year due to switch
from DNA to proteins and virus.



Restructuring of sales and marketing to address US market.



Restructuring of the Oxford and Keele facilities.



Broadening of customer base - 12 new customers in 2004.



The 4.8m Oxford Facility completed on time and to budget.



Contracted business for financial year 2005 stands at 2.7m.



Financial:


Revenue: H2 2004 up 30% to 2.0m compared with H1 2004 1.5m
FY 2004 down 42% to 3.5m (FY 2003: 6.0m)

Gross margin: H2 2004 49% compared with H1 2004 39%
FY 2004 45% (FY 2003: 57%)

Loss before tax: H2 2004 reduced by 17% to 1.03m compared with H1 2004 1.24m
FY 2004 2.27m (FY 2003: 0.82m profit)

Cash at bank: Sept 2004 3.2m compared with Mar 2004 3.8m (FY 2003: 7.3m)

Loss per share: FY 2004 12.3p (FY 2003: 6.9p earnings)

Director Speak

Commenting on the results, Peter Fothergill, Executive Chairman said:

'Our second half improvement and the current position of our order book are
significant achievements. Management moved rapidly during the year to focus
sales and marketing in the US and from DNA to virus and protein production. This
was no mean feat and we are cautiously optimistic for the future.'

Company Outlook Statement.

Management is actively seeking to broaden the customerbase particularly in the US biotechnology clusters and is examining ways toexpand the service offering including later stage manufacture and there by developing longer-term relationships which can reduce the impact of the high levels of clinical trials failure. These initiatives are already beginning to gain traction with contracted business currently 2.7 million for the financial year 2005 ('2005'), with 52% from North America. If this improvement continues Cobra will recover value for its shareholders.

Fundies.

Presently loss making but looks like the corner has been turned. Awaiting next trading update/results.

Beta.

Fairly High.

Conclusion

Highly Speculative, but the rewards if recovery does take place could be very rewarding.



cheers GF.

Just moved up another penny.

cheers GF.

This one is too risky for me GF. I think I'll sit this one out for the time being. Not a good track record, but " He Who Dares". I think there are better one available at the moment.

LOL

MS

'YOUL BE SORRY'

Anyway back to business...............................

Cobra bites back with new US deal

Published: 16:16 Friday 11 February 2005
By: Graeme Davies, Investment Correspondent


Biopharmaceutical specialist Cobra Bio-Manufacturing has leapt 32% on news of a deal with a US biotech company that will boost its order book this year although investors still have some way to go to make up last year's losses.

The 9 million company (CBF) saw its shares slump from 150p to as low as 21.5p during 2004 as sales almost halved following the failure of DNA-based medicines in trials. Cobra makes experimental biotechnology drugs on behalf of other pharmaceutical companies for them to put through trials.

Cobra's shares have added 11.25p to 46.5p today after it announced a deal with an unnamed US biotech company. The value is in excess of $3.6 million (1.93 million) and will see Cobra manufacture eight protein products. This reflects management's attempts to widen its product range after a fall in demand for DNA-based products.

Cobra chief executive David Thatcher told Citywire: 'Things are going really well. This deal gives us a bit of stability going forward, normally our contracts have been 300,000-1 million. There is ten times as much investment into biotech in the US than the UK although the UK is still an important market. If the US dollar strengthens it will have a big impact on us.'

The latest deal takes the value of Cobra's contracted business for this year to 4.9 million and its total forward order book to 5.9 million. This means its contracted business is now worth two and a half times more than it had booked at this time last year. North American orders represent 72% of forward orders.

Last year turnover fell to 3.5 million and losses amounted to 2.3 million compared with a profit of 820,000 the previous year.

Today's deal is a bonus for Cobra investors and vindicates the management's broadening of its services but there is still a long way to go to recapture some of the excitement that surrounded the stock in late 2003 and early 2004.

One long term Cobra follower is AA-rated Paul Mumford of Cavendish Asset Management, who bought shares earlier this week and tried to buy more this morning but missed out before the shares shot up. He has been an active trader in Cobra, selling out his initial holding from its ML Laboratories demerger at Cobra's all time high.

Mumford told Citywire: 'This deal is good, it raises the level of orders and Cobra's order book is relatively short in terms of delivery time so it looks promising in terms of annual orders. Cobra has got a reasonably strong balance sheet, I always felt they could be taken out so it was a good two way bet but now it seems as though trading is going alright.'

Mumford's Cavendish Opportunities fund holds around 2% of Cobra.

cheers GF.

GF

I can't buy all you recommendations as the lolly is all invested. Your tips are outstripping the cash. Not that I'm complaining, long may it last. Decisions, decisions, decisions. Now what one will I buy next?

LOL

MS

CFDs that the answer Mickey. Anyway just heard Evil Knievil as gone LONG on these and says they have a solid balance sheet and are way undervalued.

cheers GF.

Some big buy volume this afternoon and the spread has tightened considerably. Nows the time to buy today.

cheers GF.

GF

Who do suggest for CFD'S?

MS

I was asking that myself over on the NLR thread, Eric, I dont know if has replied.

cheers GF.

Well GF I'm in, but not big time. I did'nt have time to do proper research so this one in a real punt for me. Talk about flying by the seat of your pants. I hope your right with this one.

LOL to both of us

MS

Nice to have you on board Mickey, just think your holding a share that the great bear Evil Knievil owns (LONG he is though).

cheers GF.

Oh no GF. Woman ( he shouts to wife in anixous voice) put the gas oven on I've just bought a share that Evil's got. Are you sure he's long?

MS

YES.

cheers GF. PS, do you realise it was him that gave out the tip, Gaming Corporation. Straight up. Hes often better at longs than he is shorts. He gave out a bio last week aswell that rocketed. Im just going to ring him now and see if he as any more tips.

Yes he as a tip, buy Cobra Bio Manufacturing.


Building up a lot of steam this one on other boards now. Should be a follow through effect.

cheers GF.

Momentum is certainly on the up, check out the trades all buys, superb.

cheers GF.

Buys pouring in.

cheers GF.

And its moved up and about time. Great recovery story this one.

cheers GF.

Long may it last. 1 by March.

MS

Look at the number of buys and they have only moved it up 1/2p. Skinny devils.

cheers GF.

No sells this morning. Tight sod's.

MS

Its the worst day all round Mickey I feel for over 2 weeks.

cheers GF.